New Delhi, May 21 -- Foreign investors have spent much of this year cutting exposure to Indian equities, diverting some capital to Taiwan and South Korea amid an AI-driven rally and robust semiconductor earnings. However, recent selling in those East Asian markets has brought the conversation surrounding foreign flows back to India.

According to Bloomberg data, Foreign portfolio investors have pulled nearly $23.4 billion from Indian equities so far this year, driven by stretched valuations, rupee weakness and softer earnings growth expectations. This sustained selling, coupled with a rising current account deficit, has severely weakened the rupee

But the flow picture across Asia is signaling some shifts. South Korea and Taiwan, which ha...